HALF YEAR RESULTS 13 August 2015
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As a result, you are cautioned not to place any undue reliance on such forward-looking statements. Certain data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly, no representation or warranty, express or implied, is made and no reliance should be placed, on the fairness, accuracy, correctness, completeness or reliability of that data, and such data involves risks and uncertainties and is subject to change based on various factors. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness. The Company and its members, directors, officers and employees are under no obligation to update or keep current information contained in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice, whether as a result of new information or future events. No representation or warranty, express or implied, is given by the Company or any of its subsidiaries undertakings or affiliates or directors, officers or any other person as to the fairness, accuracy, correctness, completeness or reliability of the information or opinions contained in this presentation, nor have they independently verified such information, and any reliance you place thereon will be at your sole risk. Without prejudice to the foregoing, no liability whatsoever (in negligence or otherwise) for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise arising in connection therewith is accepted by any such person in relation to such information. 2015 Half Year Results Slide 2
STRATEGY Positioned to thrive in uncertain times VALUE CREATION THROUGH EXPLORATION FOCUS ON ROCE THROUGH CAPITAL ALLOCATION AND COST MANAGEMENT ACTIVE PORTFOLIO AND RISK MANAGEMENT 2015 Half Year Results Slide 3
STRATEGIC CONTEXT Response to the current oil price Well positioned to grow NAV per share: • Reduced capital expenditure • Improved efficiencies and overhead cost reductions • De-levered the Salamander balance sheet and retained financial strength • Benchmarking projects against $50 per bbl environment • Self funding developments • Potential share buybacks 2015 Half Year Results Slide 4
OPHIR DOES NOT THINK LIKE A TRADITIONAL, FULL CYCLE E&P Ophir is BIG E and little p CASH EXPLORATION DEVELOPMENT PRODUCTION • Production is a • Self-funded financing stream for • Exploration is focus for development activity E&A activity RETURN TO creation of shareholder SHAREHOLDERS • Minimal existing capital • Reserves replacement value will be deployed to and production growth • Unique position to deliver developments are not key metrics high graded portfolio due • Assets must break to strong balance sheet and even at low oil price minimal well commitments A SELF-SUSTAINING EXPLORER DELIVERING SUPERIOR RETURNS TO SHAREHOLDERS 2015 Half Year Results Slide 5
EXPLORATION – A UNIQUE OPPORTUNITY STAGE 1: ENTRY STAGE 2: SEISMIC STAGE 3: DRILLING OF CYCLE High Signature Bonus TOP High cost PROGRESS Seismic High costs Mainly commitment Wells Multiple Wells DROP BOTTOM OF CYCLE Small/No Signature Rig costs down c. 30% PROGRESS Bonus Costs down c. 50% Only drill top ranked Seismic inherited prospects DROP DROP DROP ALL THREE COST COMPONENTS DROPPED IN PRICE - RISK OF ROCKS IS UNCHANGED 2015 Half Year Results Slide 6
HIGH GRADED EXPLORATION PORTFOLIO Minimal commitments, low cost entry 2014 2015 FINAL WELLS IN IPO PORTFOLIO MATURING PLAYS FOR HIGH GRADING 5 PLAYS 12 PLAYS 2016/17 CAPITAL DISCIPLINE 2 Established Aru Trough (oil) EG (oil) 3 New tests G4/50 (oil) DRILLING ON Gabon pre-salt (oil) ONLY PROGRESS • 8 commitment wells in 2014 HIGH GRADED TOP RANKED Gabon post-salt (oil) • c.$500 MM in commitments PROSPECTS PLAYS Gabon conjugate margin (oil) to build IPO portfolio Kenya (oil/gas) Kerendan (gas) Makassar Straights (oil/gas) • Discipline to only drill WALK AWAY FROM PROSPECTS Myanmar (gas) preferred prospects THAT WON’T WORK Seychelles (oil) • Must be clear path to Western Birds Head (oil) commercialisation • Doubled exploration footprint • 1 deepwater well commitment • $100 MM of committed E&A spend 2015-2017 • $50 MM to build new portfolio 2015 Half Year Results Slide 7
SELF FUNDING DEVELOPMENT ASSETS No fresh capital deployed to development • Not all barrels are equal • We explore for high quality barrels that generate cash in a low price environment • Project equity is a source of capital SELF FUND TANZANIA TOTAL VOLUME 2C: First gas 2022 W.I. 20% 950 MMboe EQUATORIAL GUINEA First gas 2019 W.I. 80% 2P RESERVES PRODUCTION KERENDAN First gas 2016 2 nd phase of dev. W.I. 70% BUALUANG On production 3 rd phase of dev. W.I. 100% CASH FOR E&A SELF FUND 2015 Half Year Results Slide 8
FINANCIALS
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